Solana currently holds a market capitalization of $11,497,704,872 with a net circulating supply of 343,433,741.57 of its embarked supply limit. It marks a huge decline in market value compared to last year and the last 30 days. The lower trading values have trapped buyers on the pretext of buying at the dip and selling at the peak.
With back-to-back dips, the SOL prices have tumbled from $250 to $25 in 1 year. There are multiple factors affecting this extreme volatility. Projected growth and actual increase in users of Solana’s service should be taken as the single-point measure of predicting the potential of this cryptocurrency and its user base.
With extreme negativity hitting the crypto leaders, a negative stance also affects the productive altcoins. Solana shows some strength even in the face of negativity. Currently consolidating between short-term resistance and support level, the turn of tides would be helpful for quick gain in momentum. Read our SOL crypto price prediction to find out the future projections of the coin.
Failure to trade above the short-term moving average curve of 50 days, Solana is indicating the probability of a crypto winter much like the winter in the game of thrones. Pun Intended, we are witnessing a shift in dynamics as BTC is now consolidating below the $20,000 mark.
This SOL price range could create a sudden outburst of buying sentiment as witnessed in prior years. Solana is currently trapped in a narrow price range where sellers and buyers are trying hard to take the price towards their end.
Currently trading at $32.97, daily volatility has dropped below 5%, and with a weaker stance, the buying strength needed to overcome the immediate resistance is increasing. Solana is much better placed since it is restricting the fall towards the nearby support level of $25.77, but that would put more pressure on buyers and could backfire in the long run.
Taking cues from the RSI curve, we can witness a consolidation in the trading sentiment, with the curve turning into a straight line. The MACD indicator, on the other hand, has projected a bearish crossover and signaled an unwarranted fall in prices towards and below the immediate support level mentioned above.
Long-term buyers could take advantage of this price band, but the probability for SOL to trade above $100 is dim in the current situation. Exhausting buying strength to avoid a dip could be even more fatal in the longer run. Fingers crossed, the price of Solana should get another pushback rally from $25 in case of a further price dip.